12th Apr 2007 07:02
SMG PLC12 April 2007 THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THEUNITED STATES, AUSTRALIA, CANADA OR JAPAN This announcement is an advertisement and not a prospectus and investors shouldnot purchase any shares referred to in this announcement except on the basis ofinformation in the prospectus to be published by Virgin Radio Limited ("VirginRadio") which is to be re-registered as a public company prior to listing.Copies of the prospectus will, following publication, be available from VirginRadio's registered office at Pacific Quay, Glasgow, G51 1PQ. SMG outlines new strategy and announces plans for Initial Public Offering ofVirgin Radio The Board of SMG plc ("SMG") announces today some key components of its strategyfor the business and its intention to list Virgin Radio by way of an InitialPublic Offering (IPO). The Board will focus SMG on TV as its core business. The CEO, Rob Woodward, isexecuting a turnaround plan for TV which will be detailed in June. The TVleadership has already been strengthened by two senior and proven executives. The Board considers Primesight to be an excellent business. The current saleprocess for Primesight has been terminated, because the Board has judged theprice achievable, although in the range of market expectations, as too low. TheBoard believes this is due to the historically weak position of SMG as a seller.SMG now has the financial and leadership stability to initiate a fresh salesprocess for Primesight, when the Board decides this is appropriate. SMG intends to seek a separate quotation for Virgin Radio over the comingmonths. There has been considerable investment in Virgin Radio during the lastyear: in broadcast talent and online content, in sales and marketing, and inplatform expansion and digital rollout. The Board anticipates that VirginRadio's IPO will create a strong and focussed radio business, with a greatbrand, that will provide an attractive, pure-play investment opportunity. Virgin Radio is one of the UK's three national radio licences and is the onlynational station with a pop and rock format. It broadcasts in analogue format onAM and digitally on DAB, satellite television, digital terrestrial televisionand online in addition to holding a London FM licence. Virgin Radio has 2.5million listeners across the UK, principally in the 20-44 year old age bracket -a particularly attractive demographic group to advertisers. Virgin Radio has consistently outperformed the UK radio market and displaysparticular strengths in sponsorship and promotions. Its iconic brand andmulti-platform stance puts the business in a unique position to capitalise ondigital listening where it already out-competes the market average by aconsiderable margin. The Board of SMG believes that the proposed IPO will provide both a strongplatform for Virgin Radio's future growth and the right strategic focus andbalance sheet structure for SMG's TV business. LongAcre Partners and Hoare Govett Ltd will act for SMG in this transaction andfurther details of the proposal will be announced in due course. Commenting on the announcement, Richard Findlay, Chairman of SMG, said: "This is the right strategic decision for SMG, increasing our focus on TV whilstreducing debt. Virgin Radio is one of the great brand names in media with anattractive national audience, strong relationships with advertisers and a cleargrowth strategy. As a quoted company it will have the best management andcapital structure to support its future growth, and will make for an attractivepure radio investment opportunity." 12 April 2007 Ends Further Enquiries: Ash Spiegelberg / James Hogan, Brunswick - 020 7404 5959 Sara Hale / John Fishley, Hoare Govett - 020 7678 8000 Jonnie Goodwin / Julian Culhane, LongAcre Partners - 0207 759 4627 This communication is directed only at (i) persons having professionalexperience in matters relating to investments who fall within the definition of"investment professional" in Articles 19(5) of the Financial Services andMarkets Act 2000 (Financial Promotion) Order 2005 (the "FPO"); or (ii) high networth bodies corporate, unincorporated associations and partnerships andtrustees of high value trusts as described in Article 49(2) of the FPO. Anyinvestment or investment activity to which this communication relates is onlyavailable to and will only be engaged in with such persons and persons whoreceive this communication (other than persons falling within (i) and (ii)above) should not rely or act upon this communication. Accordingly thisannouncement is exempt from the general restriction set out in Section 21 of theFinancial Services and Markets Act 2000 ("FSMA") and has not been approved by aperson who is authorised under FSMA. This announcement does not constitute or form part of any offer of securities,or constitute a solicitation of any offer to purchase or subscribe forsecurities, and any acquisition of or application for shares in the IPO shouldonly be made on the basis of information contained in the prospectus to beissued in due course in connection with the IPO, and any supplement or amendmentthereto. This announcement is not for release, publication or distribution, directly orindirectly, in or into the United States, Australia, Canada or Japan. This announcement does not constitute an offer of securities for sale in theUnited States. The securities referred to herein have not been and will not beregistered under the US Securities Act of 1933 (the "Securities Act"), and maynot be offered or sold in the United States unless they are registered under theSecurities Act or pursuant to an available exemption therefrom. No publicoffering of securities of Virgin Radio is being made in the United States. Certain statements in this announcement are forward-looking statements. Suchstatements are based on current expectations and are subject to a number ofrisks and uncertainties that could cause actual results or events to differmaterially from those expressed or implied by the forward-looking statements. This does not constitute a recommendation concerning the IPO. The value ofshares can go down as well as up. Past performance is not a guide to futureperformance. Potential investors should consult a professional advisor as to thesuitability of any offering for the individual concerned. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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